Mt Gox files for a money transmitter : CA send the Bitcoin Foundation a cease and desist letter, The Foundation responds : Worlds first crypto-currency based political zone : Opencoin integrates Bitcoin into Ripple : Winklevoss creates a Bitcoin ETF : China : Malware steals Litecoin : Bitcoin London : Argentina and Bitcoins
Episode Theme: PRIVACY; Wikileaks denied donation, NSA collecting Verizon phone records, AP phone records seized, PGP keys, Tor Browser, Virtual Private Networks, Bitcoin anonymity, Porcfest
In-studio guest Pedro talks about why he switched from mining litecoin to mining bitcoin : issues with GPU mining : Bitmessage, a P2P encrypted email system : quantum computers and encryption : Bitcoin blockchain compression and trust-free nodes : point of sales transactions : open source development
In episode 3 of the Neocash Radio podcast we had a chance to talk to Jon Holmquist from BitcoinStore.com. Jon told us about how in the first quarter of being in business BitcoinStore.com had $500,000.00 in sales proving that there is a market in selling electronics for Bitcoin. The store sells a large variety of electronics and offers a dollar price so you can compare it to other sites.
Curious? Listen to the interview!
On February 16th, 2013, nearly two months before one bitcoin hit $266.00 in value, three brave entrepreneurs unveiled their Bitcoin Machine to the public. The venue was the 2013 International Young Americans for Liberty Conference held in Washington D.C. and the three early adopters were Zach and Josh Harvey, and Matt Whitlock of Lamassu BTC Ventures. One week later they debuted it at the 2013 Liberty Forum in New Hampshire and $5500 worth of Bitcoin was purchased, at the time bitcoin was rough $30.00 each.
The three returned to the development of the machine and while they fine tuned the design Bitcoin took off! On April 10th, 2013 at just after 12:00pm UTC bitcoin hit $266.00 in value and the world took notice! A week earlier the situation in Cyprus was heating up and the talk of the worlds first Bitcoin ATM started to happen. The press jumped on this story and soon Jeff Berwick was known as the Bitcoin ATM guy with quotes like, “we already have orders from 30+ countries”.
These sort of stories continue as the idea of a bitcoin ATM is exciting, this one is from May 3rd, 2013: San Diego May Get World’s First Bitcoin ATM. The press is hungry for Bitcoin news and it’s no wonder, Bitcoin is fast becoming the hip trend to jump on.
The Bitcoin Machine
Lamassu BTC pushed to finished their development and the rise of bitcoin only intensified the demand for a machine that could accept Dollars and vend Bitcoins. More recently exchange crashes, DDoS attacks, and bank account closings have caused some difficulty for consumers to get their money in and out of Bitcoin. The Bitcoin Machine will help with one of those problems leaving wire transfers and a variety of non-bank methods for changing your Bitcoin into Dollars.
The Bitcoin Machine is going through the final stages of testing and development in Manchester, NH. The machine is designed to be a counter-top unit kept indoors and under supervision. It works with the consumers smartphone camera and utilizes a QR code to relay wallet address information. As you can see from the photograph, some effort was put into making sure the device was not only secure and functional but also aesthetically pleasing. The company hopes to start taking pre-orders as early as this summer.
Neocash Radio had a chance to conduct a phone interview with one of the owners, Zach Harvey for Episode 3 of the podcast. We have packaged the interview in a stand-alone format for easy listening and sharing. Take a listen!
UPDATE BELOW. Reports are coming in that payment service Dwolla has been legally blocked from servicing Mt. Gox transactions. The Bitcointalk.org forum admin has supplied an image of his notice, posted below. The notice states that:
Due to recent court orders received from the Department of Homeland Security and U.S. District Court for the District of Maryland, Dwolla is no longer legally able to service Mutum Sigillum LLC’s [Mt. Gox] account.
UPDATE! I have received confirmation from Dwolla:
Thank you for your email. Yes, this is the case.
As of 12:13 PM on 5/14/2013, the U.S. District Court for the District of Maryland issued a “Seizure Warrant” for the funds associated with Mutum Sigillium’s Dwolla account (a.k.a. Mt. Gox). In light of the court order, procured by the Department of Homeland Security, Dwolla has ceased all account activities associated with Dwolla services for Mutum Sigillum.
This episode featured two interviews from prominent bitcoin businesses. The first was an interview with Jon Holmquist from bitcoinstore.com, an online discount electronics retailer. The second interview was with Zach Harvey from Lamassu BTC Ventures, the worlds first bitcoin ATM. We also discuss possible changes to the bitcoin-qt client as well as reasons why bitcoin will succeed.
Listen, download it, share it!
The person or people claiming the name Satoshi Nakamoto solved a difficult problem. There was a certain amount of creativity required, and a simplistic beauty in the solution. Like many times when a elegant solution is announced, more problems become apparent. It is the very nature of solutions that they expand what people can think about and hence lead to more unanswered questions. In this way, the chain of discoveries progresses on.
Satoshi is not immune to this process of answers leading to more questions. We have seen the successful implementation of Bitcoin, which has led to more problems. One such problem is that fees for transactions are static and not dynamically adjusted as demand for block space or market conditions change. Another such problem is blockchain bloat, which every user that downloads the reference client experiences as they loose over seven gigabytes of free space on their hard drive. Another problem is that unsuspecting users get very small payments many times, these payments can’t be spent as they will not cover the fee of a transaction that will be several kilobytes in size. Of course, there is a viewpoint that these are not problems at all, but rather suboptimal solutions.
Markets reacted as expected today except for news broadcast by the CME group. As we discussed on our most recent podcast. Bitcoin market rose Monday morning in response to the opening of the legacy banking system. Somewhat surprising the rally seems to be led by buying with US dollars. Only moderate volume is reported on btcchina.com.
Gold buying in Asia seems to remain strong. The US paper gold markets took a little dip brought on by the CME group announcement of increased margin requirements on copper. This probably encouraged selling of gold to cover copper positions.
CME group increasing margin requirement: http://www.kitco.com/reports/KitcoNews20130506AS_copper.html
Bitcoin and crypto-currencies in general can be difficult to understand by many. Even the tech-savvy have questions with this new breed of digital commerce. Part of the idea behind Neocash Radio is breaking down the idea into easy to digest and understand components. We are trying to make the topics available for all audiences.
Starting out we have a micro-podcast that simply explains how bitcoin works and how you can remain secure with your coins. This tutorial is meant for newbies so we try to avoid too much technical jargon. There is much to understand if you want to have all the information necessary to make an informed decision. If you want to have a better grasp on bitcoin and litecoin, take a listen to this micro-cast:
The next step in the process deals with wallets. Wallets, much like real life, hold your coins and serve as an address book for people you send coins to. This is where security really gets important. Your wallet, just like your physical wallet, must be protected from theft and there are a few ways to do this. If you are looking for information on how to set up a wallet online, on your computer, and on your smart phone take a listen to this micro-cast:
Finally in order to fully understand the entire bitcoin process you need to have an idea how the coins are created. You also need to understand how the ledger — or blockchain — is created and maintained. This is the fundamental core of the crypto-currencies. When an individual wants to send bitcoins to someone else what they are actually doing is broadcasting a message to the network, in effect saying, I am sending X coins to X address. Unlike credit cards and dollar transactions the exchange of bitcoins and litecoins is a one-way conversation. If you want to better understand mining, take a listen to this
We are always looking for better ways to explain these ideas and if you have an questions, comments, or suggestions please let us know. You can send me an email at jj AT neocashradio.com (replace the spaces and AT with @).